Smart and profitable traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. Stock and forex traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new traders will try and fight the trend.

Tuesday, May 27, 2014

VIX

VIX watchers are looking for the next catalyst which might send the "fear gauge" higher. Most agree it's low relative to history and that generally the VIX doesn't hang at such depths that long. For Peter Boockvar at The Lindsey Group, the key reading for the markets and the VIX this week is Friday's PCE inflation data. He sees prices "much sooner than the Fed is forecasting." A rising-inflation scenario would dent the narrative that the Fed will keep rates lower for the indefinite future and could "hugely influence markets and the VIX," says Boockvar. The VIX closed Friday at 11.36, the lowest finish since March 2013.

Learning to Trade

Stock market trading the fear of losing If you are a trader in the stock market losing trades are part of trading. One of the biggest emotional aspects in trading is to overcome the fear of losing. Having a losing trade causing you to have feeling of fear and pain from the loss. All good stock traders will except small loses and learn from the experience. Traders need to realize that they will have small loses its part of the trading game as they learn to play to win. They will adjust their trading strategy to keep losses small and their winning stock trades big. As a stock trader you need to learn what the successful traders are doing and study their trading style. This way you will limit your losses and keep them manageable. You need to work on your mind set that you will have losses in stock trading. Learning to trade with a mind set of not to lose is good to a certain point. Small losses are the price to be paid to be a consistence winner in the stock markets

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